E-commerce 2019: Business. Technology. Society. Fifteenth Edition, Global Edition Chapter 1 Introduction to E-commerce Copyright © 2020 Pearson Education Ltd. All Rights Reserved Learning Objectives 1.1 Understand why it is important to study e-commerce. 1.2 Define e-commerce, understand how e-commerce differs from ebusiness, identify the primary technological building blocks underlying ecommerce, and recognize major current themes in e-commerce. 1.3 Identify and describe the unique features of e-commerce technology and discuss their business significance. 1.4 Describe the major types of e-commerce. 1.5 Understand the evolution of e-commerce from its early years to today. 1.6 Describe the major themes underlying the study of e-commerce. 1.7 Identify the major academic disciplines contributing to e-commerce. Copyright © 2020 Pearson Education Ltd. All Rights Reserved Everything On Demand: The “Uberization” of E-commerce • Class Discussion – Have you used Uber or any other on-demand service companies? – What is the appeal of these companies for users and providers? – Are there any negative consequences to the increased use of on-demand services like Uber and Airbnb? Copyright © 2020 Pearson Education Ltd. All Rights Reserved The First Thirty Seconds • First two decades of e-commerce – Just the beginning – Rapid growth and change • Technologies evolve at exponential rates – Disruptive business change – New opportunities • Why study e-commerce – Understand opportunities and risks – Analyze e-commerce ideas, models, issues Copyright © 2020 Pearson Education Ltd. All Rights Reserved Introduction to E-commerce • Use of Internet to transact business – Includes Web, mobile browsers and apps • More formally: – Digitally enabled commercial transactions between and among organizations and individuals Copyright © 2020 Pearson Education Ltd. All Rights Reserved The Difference between E-commerce and E-business • E-business: – Digital enabling of transactions and processes within a firm, involving information systems under firm’s control – Does not include commercial transactions involving an exchange of value across organizational boundaries Copyright © 2020 Pearson Education Ltd. All Rights Reserved Technological Building Blocks Underlying E-commerce • Internet • World Wide Web – HTML – Deep Web v s “surface” Web ersu • Mobile platform – Mobile apps Copyright © 2020 Pearson Education Ltd. All Rights Reserved Insight on Technology: Will Apps Make the Web Irrelevant? • Class Discussion – What are the advantages and disadvantages of apps, compared with websites, for mobile users? – What are the benefits of apps for content owners and creators? – Will apps eventually make the Web irrelevant? Why or why not? Copyright © 2020 Pearson Education Ltd. All Rights Reserved Major Trends in E-commerce • Business trends include: – All forms of e-commerce show very strong growth • Technology trends include: – Mobile platform has made mobile e-commerce reality • Societal trends include: – Increased online social interaction and sharing Copyright © 2020 Pearson Education Ltd. All Rights Reserved Unique Features of E-commerce Technology (1 of 2) 1. Ubiquity 2. Global reach 3. Universal standards 4. Information richness Copyright © 2020 Pearson Education Ltd. All Rights Reserved Unique Features of E-commerce Technology (2 of 2) 5. Interactivity 6. Information density 7. Personalization/customization 8. Social technology Copyright © 2020 Pearson Education Ltd. All Rights Reserved Types of E-commerce • Business-to-Consumer (B2C) • Business-to-Business (B2B) • Consumer-to-Consumer (C2C) • Mobile e-commerce (M-commerce) • Social e-commerce • Local e-commerce Copyright © 2020 Pearson Education Ltd. All Rights Reserved Figure 1.5 The Growth of B2C Ecommerce in the United States Copyright © 2020 Pearson Education Ltd. All Rights Reserved Figure 1.7 The Growth of B2B Ecommerce in the United States Copyright © 2020 Pearson Education Ltd. All Rights Reserved Figure 1.8 The Growth of M-commerce in the United States Copyright © 2020 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (1 of 4) • Precursors – Baxter Healthcare modem-based system – Order entry systems – Electronic Data Interchange (EDI) standards – French Minitel Copyright © 2020 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (2 of 4) • 1995–2000: Invention – Sale of simple retail goods – Limited bandwidth and media – Euphoric visions of ▪ Friction-free commerce ▪ First-mover advantages – Dot-com crash of 2000 Copyright © 2020 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (3 of 4) • 2001–2006: Consolidation – Emphasis on business-driven approach – Traditional large firms expand presence – Start-up financing shrinks – More complex products and services sold – Growth of search engine advertising – Business web presences expand Copyright © 2020 Pearson Education Ltd. All Rights Reserved E-commerce: A Brief History (4 of 4) • 2007–Present: Reinvention – Rapid growth of: ▪ Web 2.0, including online social networks ▪ Mobile platform ▪ Local commerce ▪ On-demand service economy – Entertainment content develops as source of revenues – Transformation of marketing Copyright © 2020 Pearson Education Ltd. All Rights Reserved Figure 1.10 Periods in the Development of E-commerce Copyright © 2020 Pearson Education Ltd. All Rights Reserved Insight on Business: Rocket Internet • Class Discussion – What are the benefits of investing in a company that Rocket Internet has launched? – Is an incubator the best solution for start-ups to find funding? Why or why not? – Why is Rocket Internet controversial? Copyright © 2020 Pearson Education Ltd. All Rights Reserved Assessing E-commerce (1 of 2) • Stunning technological success • Early years a mixed business success – Few early dot-coms have survived – Online sales growing rapidly • Many early visions not fulfilled – Price dispersion – Information asymmetry – New intermediaries Copyright © 2020 Pearson Education Ltd. All Rights Reserved Assessing E-commerce (2 of 2) • Other surprises – Fast-follower advantages – Start-up costs – Impact of mobile platform – Emergence of on-demand e-commerce Copyright © 2020 Pearson Education Ltd. All Rights Reserved Understanding E-commerce: Organizing Themes • Technology: – Development and mastery of digital computing and communications technology • Business: – New technologies present businesses with new ways of organizing production and transacting business • Society: – Intellectual property, individual privacy, public welfare policy Copyright © 2020 Pearson Education Ltd. All Rights Reserved Figure 1.11 The Internet and the Evolution of Corporate Computing Copyright © 2020 Pearson Education Ltd. All Rights Reserved Insight on Society: Facebook and the Age of Privacy • Class discussion: – Why are social networks interested in collecting user information? – What types of privacy invasion are described in the case? Which is the most privacy-invading, and why? – How is e-commerce different from traditional markets with respect to privacy? Don’t merchants always want to know their customer? – How do you protect your privacy online? Copyright © 2020 Pearson Education Ltd. All Rights Reserved Academic Disciplines Concerned with Technology • Technical – Computer science, management science, information systems • Behavioral – Information systems research, economics, marketing, management, finance/accounting, sociology Copyright © 2020 Pearson Education Ltd. All Rights Reserved Careers in E-commerce • Position: Category specialist in E-commerce Retail Program • Qualification/Skills • Preparing for the Interview • Possible Interview Questions Copyright © 2020 Pearson Education Ltd. All Rights Reserved Copyright Copyright © 2020 Pearson Education Ltd. All Rights Reserved
